Hong Kong FDI Up 5.6% On Previous Year

by Philip Morton, Investors Offshore.com

18 October 2006

A United Nations report has revealed that Hong Kong attracted US$35.9 billion in foreign direct investment last year, up 5.6% on 2004, making it the second-largest FDI destination in Asia after the Chinese Mainland, which amassed US$72.4 billion.

According to the UN's World Investment Report 2006, the FDI that flowed into Hong Kong was greater than the combined total for Singapore (US$20.1 billion), South Korea (US$7.2 billion) and India (US$6.6 billion).

On a global scale, Hong Kong ranked sixth in FDI inflows in 2005, and continued to be classified as one of the "front-runner" economies. The city also led all Asian economies, ranking fourth globally in terms of inward FDI stock last year, with US$533 billion.

Invest Hong Kong's Director-General of Investment Promotion Mike Rowse observed that it is encouraging to see Hong Kong continues to be a major destination for FDI.

"The results reflect Hong Kong's unique position as the two-way platform for overseas investors accessing the Mainland and the rest of the region - and for Mainland companies to expand in international markets."

"Beyond the numbers, many of these companies are bringing new skills, products and services and job opportunities that contribute substantially to our economic development and competitiveness."

The Census & Statistics Department's latest figures, meanwhile, have shown that Hong Kong's inward FDI in the first half this year amounted to US$20.66 billion.

Mr Rowse went on to add that during the same period, InvestHK has helped 156 overseas and Mainland companies invest in Hong Kong.

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